Can someone recommend a really nice hotel in Ocean City, Md.I've been looking into the Princess Royal, the Clarion and the two Holiday Inns.Is anyone familiar with these. What section is the nicest to stay in?

Gina-
You don't say when you are going.
The Princess Royale is very nice. My wife and I stayed in the Fenwick Inn at the upper end of Coastal Highway. It has an indoor pool, if you are going in cold weather, and a nice restaurant on the top floor with a pretty nice view. the food there was excellent.
If you are looking for romance, then check out Fagers Island.

The Coconut Mallory is the best.

Coconut Mallorie is nice, but is on the bayside, you will have to cross Coastal Highway to get to the beach. I'm not familiar with the holiday inns, but know that the Princess Royal looks nice (from the outside). There is also the Carousel, with an indoor ice rink up around 100th street. And there is a sheraton Fountainbleu on the beach, also on 100th street that looks nice. Unfortunately, I haven't stayed in any of these hotels so can't tell you what the rooms look like. Basic rule of thumb for OC is that if you stay in the south part of OC (61st & below), and along the boardwalk (30th & below), the motels/hotels are older & smaller, as you go north, you get into the resort areas (above 80th or so). Have you considered a condo? Some are very luxurious, especially up above 100th street.

We stayed at the Princess Royale 3 years ago for a weekend and loved it. At that time it had a 3 star AAA rating. After staying there (elegant lobby, huge nicely furnished rooms, great pool area and wonderful staff) I wrote to AAA to recommend that they raise it to a 4 star. (I've never done this before - but we were so impressed)
I don't think AAA took my advice!

I am planning another family trip up to Ocean City in early June (just before their rates skyrocket) and have booked a room in the Princess Royale again. Wouldn't miss it!

I have no knowledge of other hotels in OC but I have to recommend that you do not stay at the Clarion. We stayed there earlier this year and received terrible service, such a disappointment. Have a fantastic vaction wherever you decide to stay